Internal control does not consist of policies and procedures that
A) protect assets from misuse
B) aid management in directing operations toward achieving business goals
C) guarantee the company will not go bankrupt
D) ensure that business information is accurate

Question

Quizplus · Accepted Answer

Internal control is a process implemented by management to provide reasonable assurance that the organization's objectives will be achieved effectively and efficiently. While internal control does protect assets, aid management, and ensure accurate business information, it cannot guarantee the company will not go bankrupt. The risk of bankruptcy comes from various factors, including competition, economic conditions, and management decisions, and these are beyond the scope of internal control.

Internal Control Does Not Consist of Policies and Procedures That